According to the New York Times, the New York Knicks have finally decided to let Jeremy Lin sign with the Houston Rockets.

Just a month ago the Knicks fought tooth and nail to win an arbitration case that granted the team “Early Bird” rights for Jeremy Lin, which would allow them to go over the cap and match other team’s offers for him. It would also allow them to use Mid-Level Exception to add further pieces to the roster.

Now the Knicks decide to not match the three-year, $25.1 million offer sheet. Lin was initially expected to sign a four-year deal worth close to $30 million, however Houston Rockets GM Daryl Morey decided to tweak the offer-sheet so he had a better chance of getting Lin. The final year of the new deal at $14.9 million is designed to cost the Knicks at least $35 million or more in luxury-tax payments had they matched the deal.

It appears that James Dolan’s Knicks have decided to let him go for purely financial reasons, which is a little surprising considering that they are the second most valuable franchise in the league. This is the same franchise that had the highest operating income in the league.

If it weren’t for Jeremy Lin’s improbable breakout last season, the Knicks would be an afterthought and no one would be talking about them. He saved their season last season and became one of the most popular players in the league.

Now they go into next season with an inferior point guard in Raymond Felton, who like Lin, had success under Mike D’Antoni. He was terrible last season in Portland and was severely out of shape. Backing him up are two over the hill point guards in Jason Kidd, who obviously didn’t take the Felton trade that well, and Pablo Prigioni, a 35 year old rookie from Argentina.

Keep in mind that this is also the same franchise that paid millions in luxury tax penalties after shelling out a combined $90 million to both Eddy Curry and Jerome James. Why they chose to decline this time is certainly perplexing, especially for someone like Lin that actually helps generate revenue and value to the franchise, but then again, it is the New York Knicks.